Do you remember Zoom? The US company was one of the big winners at the beginning of the Corona pandemic. The stock price rose in 2020 from just under 70 US$ to 568 US$. In the meantime, the stock price is back to the level of 2020. Those who did not sell in time are now sitting on a loss or are at plusminuszero. Is a turnaround now emerging from which you as an investor can profit?

Growth of 194% For the 3rd quarter, the company reported revenues of 1.14 billion US$ compared to 1.10 billion US$ in the previous year. Net income was 141.21 million US$ compared to 48.35 million US$ the year before. Earnings per share were 0.47 US$ compared to 0.16 US$ a year ago.

Zoom exceeds expectations With the figures reported for the 3rd quarter, Zoom has exceeded analyst expectations.

For the 4th quarter, the company expects total revenue between 1.125 billion US$ and 1.130 billion US$ and revenue at constant exchange rates between 1.12 billion US$ and 1.13 billion US$.

Slight growth in 2024 Zoom now expects for the fiscal year 2024 an adjusted earnings per share of 4.93 US$ to 4.95 US$ with a revenue of 4.506 to 4.511 billion US$. Previously, the company had expected earnings per share of 4.63 US$ to 4.67 US$ and revenue between 4.49 billion US$ and 4.5 billion US$. The forecasts therefore only show slight growth.

Analysts not overly optimistic Conclusion: As you can see from the chart, the stock is still not getting going. A look at the analyst expectations shows an average mood. Only 9 of 32 analysts recommend buying and 25 want to hold. The average analyst price target is 80 US$ and offers you as an investor a potential of 21.07%. Some analysts believe 100 US$ is possible – far from the pandemic high of over 560 US$. However, Zoom is now not highly valued with a P/E of 14 based on the profit estimate for 2024.